Drive to Success: Prepare for the Return of Margin Compression

Welcome back to Drive to Success, our roundup series of trending topics and stories hand-picked to help you navigate the path to profitability.

You spent last year battling unprecedented challenges like lockdowns, never-before-seen safety measures, new regulations, and a shift to digitization overnight. But, lurking on the sidelines was a familiar foe just waiting to tap in when you let your guard down: margin compression. Shrinking profit margins tend to follow economic slowdowns, and with the US economy shrinking by the largest amount in the past 74 years, you could be headed for trouble. Here’s a roundup of tips, tools, and expert advice from some of the industry’s leading experts who haven’t taken their eye off the target.

1 – Interview with David Foutz of Cox Automotive on Margin Compression & What’s in Store for 2021

Selly Automotive: In this interview of Used Car Dealer Podcast, David Foutz, VP of Sales at Cox Automotive explains why dealers simply can’t take their eye off the ball when it comes to margin compression—and what to expect for the year ahead in a post-pandemic reality.

Read More

2 – Used Profits Could Be ‘Imaginary’

Go Auto: Dale Pollak, founder of vAuto, reveals “gross deception,” hiding the reality of used car sales and shrinking profit margins. The math has changed.

Read More

3 – Leverage Technology To Take On Margin Compression

Dealertrack: Margin compression almost always follows an economic slowdown. With recent, unprecedented events in our economy, it’s time to expect the…expected. Here’s how to leverage the tools within your dealership to combat this familiar foe.

Read More

4 – Car Dealers Err in Pricing Used Vehicles

Wards Auto: In his new book, author Dale Pollak tells dealers to reconsider his past advice. “You know that way I told you to do it? Stop doing it.”

Read More

5 – Will U.S. Profit Margins Compress Further?

Forbes: Increased political tensions, slowing globalization, and factors from the 2020 pandemic are all set to have a major impact on our economy this year.

Read More


Subscribe To Our Blog

Sign up today to receive updates on the latest news.

Please enter a valid email address.

Subscription Successful!